Although product placement has been around for a long time, it is taking on greater importance in the marketing mix as studio executives ponder their options in a shifting media landscape.

Online properties are finding ways to leverage intense consumer interest in product placements. As mentioned previously,
sites such as SeenON! and StarStyle offer visitors information about
the apparel, accessories, furniture and gadgets that appear in the
latest movies and on television shows.

Support for these sites comes
from sponsors that include online movie rental service Netflix and
brands whose products are featured on screen.

PQ Media
projects that worldwide product placement spending on films and TV
shows will reach $4.38 billion in 2007, up more than 30% from the 2006
figure of $3.36 billion.

When the exposure value of non-paid product placement is
factored in, these figures more than double to $9.33 billion in 2007 and $7.76
billion in 2006.

The majority of product placement spending in films and TV shows occurs in the United States, according to PQ

While the amount spent on placements is a telling
indicator of the strength of this advertising channel, Nielsen Media Research quantified the effectiveness of product placement branding in the US.

The market researcher found that between October 2005 and
June 2006, 58% of respondents recognized a brand after viewing a product
placement in conjunction with a commercial, versus 47% recognition among those
who saw only the commercial.

Via eMarketer